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Austin Local News

Texas probes possible Mexican state corruption

(AP) — Federal and state authorities in South Texas are investigating a group of businessmen and officials from a Mexican border state accused of laundering tens of millions of dollars in kickbacks.

The San Antonio Express-News (http://bit.ly/XvIXck ) reports that several people with ties to the state of Coahuila are under investigation. Prosecutors have tried to seize real estate throughout San Antonio that they say was purchased with money taken from Coahuila government.

Among those charged is a former state treasurer, Hector Javier Villarreal Hernandez, who is accused of sending kickbacks from Mexico into Texas. Villarreal's attorney has denied the allegations.

The ongoing investigations could be sensitive, as Coahuila shares border crossings with Texas, and leaders on both sides of the border are familiar with each other.